- 2023-08-18
Thailand's total imports and exports contracted year-on-year, resulting in a trade deficit
The Kasikorn Research Center released a report on the 10th that, affected by the economic slowdown of major trading partners, Thailand's total exports in the first half of this year were 141 billion US dollars, down 5.4% year-on-year, and total imports were 147 billion US dollars, down 3.5% year-on-year, with a trade deficit of 6.307.6 billion US dollars.
The Kasikorn Research Center predicts that in the second half of 2023, Thailand's total exports will continue to be affected by the global economic slowdown, the manufacturing purchasing managers' index (PMI) of the United States and the eurozone in July and the manufacturing purchasing managers' index of China in June are still below 50, which is a major challenge for Thailand's exports in the next stage, and the impact depends on the specific factors in each market.
One is the American market. The continued tightening of monetary policy since last year has led to a slowdown in the US economy, weakening the US economy and consumer demand, especially for electronic products such as computers and components, compared with the previous high demand caused by the working life mode during the COVID-19 pandemic.
The second factor is the eurozone market. The purchasing power of euro area consumers continues to be affected by high inflation, and the region's import demand, especially for durable goods, which account for about 30% of Thailand's exports to this market, remains subdued.
The third factor is the ASEAN market. As energy prices have slowed considerably from last year and tend to continue to do so, Thailand's commodity exports, which are a large part of the market, tend to decline.
For Thailand, the Chinese market is the only major market likely to achieve export growth in 2023, due to the trend of continued growth in food exports and improved transport efficiency through the new Thai-Laos-China railway, which will help increase export opportunities.
In addition to this, there are other challenges that could affect Thailand's exports, such as adverse weather conditions affecting agricultural output, geopolitical factors and fluctuations in the baht exchange rate.